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Absorbing Sets in Coalitional Systems

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  • Iñarra García, María Elena
  • Kuipers, Jerome
  • Olaizola Ortega, María Norma

Abstract

The purpose of this paper is twofold: First, to present an approach and a solution for analyzing the stability of coalition structures: We define a coalitional system (a set and a binary relation on that set) that explains the transitions between coalition structures and we propose to solve these systems using the absorbing sets solution for abstract systems. Second, to perform an analysis of this approach to evidence its utility in determining the stable coalition structures for some socioeconomic problems. We find that the absorbing sets solution efficiently solves this class of coalitional systems.

Suggested Citation

  • Iñarra García, María Elena & Kuipers, Jerome & Olaizola Ortega, María Norma, 2001. "Absorbing Sets in Coalitional Systems," BILTOKI 1134-8984, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística).
    • Handle: RePEc:ehu:biltok:5745
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    References listed on IDEAS

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    1. Kalai, Ehud & Schmeidler, David, 1977. "An admissible set occurring in various bargaining situations," Journal of Economic Theory, Elsevier, vol. 14(2), pages 402-411, April.
    2. Ray, Debraj & Vohra, Rajiv, 1997. "Equilibrium Binding Agreements," Journal of Economic Theory, Elsevier, vol. 73(1), pages 30-78, March.
    3. Yi, Sang-Seung, 1997. "Stable Coalition Structures with Externalities," Games and Economic Behavior, Elsevier, vol. 20(2), pages 201-237, August.
    4. M. P. Espinosa & E. Inarra, 2000. "Von Neumann And Morgenstern Stable Sets In A Cournot Merger System," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 29-45.
    5. Kalai, Ehud & Pazner, Elisha A & Schmeidler, David, 1976. "Collective Choice Correspondences as Admissible Outcomes of Social Bargaining Processes," Econometrica, Econometric Society, vol. 44(2), pages 233-240, March.
    6. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
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    Cited by:

    1. Kuipers, Jerome & Olaizola Ortega, María Norma, 2004. "Internal Organization of Firms and Cartel Formation," IKERLANAK 6231, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    2. Olaizola Ortega, María Norma, 2003. "An Approach to the stability of international environmental agreements: the absorbing sets solution," IKERLANAK info:eu-repo/grantAgreeme, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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